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Dollar Getting Crushed

The dollar is getting crushed against all of its major counterparts this morning on U.S. retail sales. The euro reached the highest level in more than two years as the ECB signaled continued support for the region’s recovery. Despite weak retail sales and industrial production data coming from China, the Aussie dollar surged over a percent on strong employment numbers and the kiwi rallied in sympathy. Both the loonie and pound are up half a percent. Emerging markets are also driving higher with the real and rand leading the way. Equities and Treasuries are relatively flat as most traders are idle over the lack of additional economic reports.

Today's Events • Retail sales in the U.S. rose 0.3% in February and January was revised down to a drop of 0.6% • The Hungarian forint strengthened the most in more than a week after its central bank commented that policy makers may reevaluate the need for further rate cuts • The pound gained the most in a month against the dollar on speculations that the Bank of England will increase rates given a steady economic recovery • Full-time employment in Australia rose by 80,500 in February, the most since August 1991, and the jobless rate held at 6% from January • Pakistan’s rupee rose 5.2% this week, the best performance among world currencies, as the country’s steady foreign reserves and improving economy lifted investor confidence

Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources. Opinions expressed are our opinions as of the date of this content only. The material is based upon information which we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such.

The dollar is getting crushed against all of its major counterparts this morning on U.S. retail sales. The euro reached the highest level in more than two years as the ECB signaled continued support for the region’s recovery. Despite weak retail sales and industrial production data coming from China, the Aussie dollar surged over a percent on strong employment numbers and the kiwi rallied in sympathy. Both the loonie and pound are up half a percent. Emerging markets are also driving higher with the real and rand leading the way. Equities and Treasuries are relatively flat as most traders are idle over the lack of additional economic reports.

Today's Events • Retail sales in the U.S. rose 0.3% in February and January was revised down to a drop of 0.6% • The Hungarian forint strengthened the most in more than a week after its central bank commented that policy makers may reevaluate the need for further rate cuts • The pound gained the most in a month against the dollar on speculations that the Bank of England will increase rates given a steady economic recovery • Full-time employment in Australia rose by 80,500 in February, the most since August 1991, and the jobless rate held at 6% from January • Pakistan’s rupee rose 5.2% this week, the best performance among world currencies, as the country’s steady foreign reserves and improving economy lifted investor confidence

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Silicon Valley Bank is registered in England and Wales at 41 Lothbury, London EC2R 7HF, UK under No. FC029579. Silicon Valley Bank is authorised and regulated by the California Department of Business Oversight and the United States Federal Reserve Bank; authorised by the Prudential Regulation Authority with number 577295; and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. Silicon Valley Bank is a subsidiary of SVB Financial Group, a Delaware corporation and is an affiliate of SVB Financial Group UK Limited. SVB Financial Group UK Ltd is registered in England and Wales at 41 Lothbury, London EC2R 7HF, UK under No. 5572575 and is authorised and regulated by the Financial Conduct Authority, with reference number 446159. SVB Financial Group and its subsidiary Silicon Valley Bank are members of the Federal Reserve System and Silicon Valley Bank is a member of the FDIC.